Genting outlook could be upgraded in six to nine months

Fitch Ratings has reported that Genting’s outlook could be upgraded from negative to stable if the vaccination rate continues to rise in its key markets.

Malaysia.- Fitch Ratings has kept Genting’s credit outlook at “BBB-” due to uncertainty surrounding the Covid-19 pandemic but says that could change in the next six to nine months if vaccination rates in key markets remain on track.

According to Fitch, Genting is expected to reduce its leverage level from six times this year to four times in 2022 and three times in 2023. It is also expected that comprehensive EBITDA will reach 80 per cent of 2019 levels in 2022 and full recovery in 2023. 

Analysts said: “We may revise the Outlook to Stable in the next six to nine months, if Genting builds a longer track record of operational stability, and demonstrates it is able to deleverage in line with our expectations.”

Fitch says that this year Genting Singapore, which operates Resorts World Sentosa, has reached only about 40 per cent to 50 per cent of revenue when compared to pre-pandemic levels, mainly due to local demand.